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Bootleggers and Baptists

Bootleggers and Baptists is a theory popularized by economist Bruce Yandle to explain one type of political alignment of seemingly contradictory interests.

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The basic theory goes something like this: Baptists (as a representation of moral forces opposed to liquor) want sales of liquor to be banned on Sundays. Bootleggers (no doubt big fans of booze and people's appetite for it) also support the ban, in a low-profile way, because it reduces competition for one day a week.

In a June 2009 visit to Fool HQ, Yandle gave this modern example of the phenomenon, in regards to the just-passed law giving the Food and Drug Administration the authority to regulate tobacco products. Tobacco company Altria Group supported the law, which might seem odd, since what company wants to subject itself to more regulation? But, it actually makes sense, if you consider Altria's leading market position and the fact that the law will make it harder for competitors to thrive.

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